Myth no. 1 : SIP(s) are only for small investors.

This is not Small Investors Plan. 
In case of SIPs, you would realize that your money saved in a systematic manner – may be daily, monthly, quarterly, for a said tenure (period of SIP) will help you to build a corpus earning a rate of return, in order to attain your financial goal, absorbing volatilities in favor of investors. Depending upon the magnitude of the targeted corpus, one can plan investments in systematic manner, thereby, making volatilities in the market work in favor of investor.

Myth no. 2 : Why SIP, when rupee cost averaging can be done in shares itself?

It’s to be noted that, certainly you can bet on equity, but diversification through mutual funds would help you to reduce the stock specific risk which you are exposed in direct equity (stocks). Moreover, as per the market cap bias (i.e. large cap, mid cap and small cap) which a fund follows, you can also strategically structure your portfolio depending upon your risk appetite. Similarly, you can structure your portfolio on the basis of the style (viz. diversified, value, growth, blend, international opportunities, flexi-cap, small & mid cap etc.) of investing followed by the mutual fund. And by adopting the SIP mode of investing for mutual funds, you’ll benefit from rupee cost averaging and compounding. SIP reduces the risk due to diversification provided by mutual funds.

Myth no. 3 : SIP MF schemes are different from lump sum MF schemes

There are no special schemes for SIP investments. Systematic Investment plans aka SIPs are just a mode of investing. One may enroll for a SIP in any mutual fund scheme, but ideally one should select a mutual fund taking into account the qualitative parameters such as investment processes and system, fund manager’s past performances, suitability of the product etc., along with quantitative parameters such as returns, risk, average AUM (Assets Under Management), liquidity, expense ratio, portfolio characteristics etc.
Remember, there’s more than just a return while selecting a mutual fund scheme for your portfolio.

Myth no. 4 : I’ll be penalized if I miss a SIP date.

One is required to provide ECS mandate form (standing instructions) along with the common application form while enrolling for the SIP. Your selected SIP details are mentioned in the ECS mandate, so, your bank keeps debiting the SIP amount in favor of the opted SIP scheme regularly at SIP dates. Hence, the question of missing dates doesn’t arise. Now for some reason if you are not maintaining a balance in your bank account for your SIP to be debited, you would simply miss that SIP installment, but your SIP account will remain active and further SIPs (subject to your bank balance) will be debited to your bank account. SIP infuses discipline in investing and is entirely at your discretion. AMC doesn’t penalize you for this; of course, your bank may or may not.

Myth no. 5 : Markets are high to begin a SIP

In this case, you should start a SIP immediately. That’s because as the market corrects, you would be accumulating more number of units, with every fall in the NAV, thus enabling you to lower you average purchase cost. And, post correction, as the markets surge again, you would gain due to extra units you might have accumulated during that turbulent phase.
Remember by adopting the SIP route for mutual fund investments, you are shielding your portfolio against the turbulence in the markets. Don’t try to time the markets as it is not always possible.

Myth no. 6 : In an ELSS (tax saver) SIP, entire money can be withdrawn after 3 years

In case of a SIP in tax saving mutual funds (commonly known as Equity linked Saving Schemes – ELSS), every SIP installment should have stayed invested for the lock-in period of 3 years. So say if you invest 5,000 through SIP in the month of April 2012, the lock-in period for only 1 installment (i.e. April 2012) will get over on March 2015. Similarly, other SIP installments need to complete 3 years as well.